India-based fashion and beauty marketplace Nykaa has filed a draft prospectus for an initial public offering that could be worth as much as $500m, Reuters reported today citing a person familiar with the matter.
The offering would consist of up to $70.6m in newly issued shares, while the remainder would come from the sale of existing stock. Nykaa is reportedly targeting a valuation of $4bn.
Founded in 2012, Nykaa operates an e-commerce platform listing cosmetics, grooming products, fashion items, pet care and household products. In addition to its online presence, its offering is available through 73 brick and mortar stores in India.
Proceeds from the initial public offering would fund the opening of additional retail locations, debt repayments and capital expenditures, Reuters said referring to the draft prospectus, although at the time of writing this was not yet available on the National Stock Exchange of India’s website.
Investment and financial services firm Fidelity Management and Research became a shareholder in Nykaa through a secondary transaction in November 2020, though details were not disclosed.
Nykaa had secured around $89m in equity financing from investors including Max Group Ventures and Industries, a subsidiary of conglomerate Max Group, which backed a $15m round in 2016 together with TVS Capital, a private equity arm of diversified conglomerate TVS.
Nykaa’s backers to date have also included Steadview Capital, TPG Growth, Lighthouse India Fund III, the family offices of Sunil Munjal and Harsh Mariwala, and private investors Dalip Pathak and Katrina Kaif.
Morgan Stanley, BofA Securities and Citigroup are among the lead book running managers for the proposed offering.
